Louis Freeman - the North Carolina Housing Coalition!

Federal Home Loan Bank of
Atlanta
AHP Set-aside
Product Training
Member Education Presentation
AHP Set-aside Product Training
F E D E R A L H O M E L O A N B A N K O F AT L A N T A
F E D E R A L H O M E L O A N B A N K O F AT L A N T A
AHP Set-aside Products
What you‘ll take away from this session:
2

An overview of FHLBank Atlanta’s new AHP Set-aside Products

An understanding of how to access product funds
AHP Set-aside Products
FHLBank Atlanta’s Exciting New Product Offering!

5 AHP Set-aside Products are now available
Purchase Products
Community
Stability Product
(CSP)
Foreclosure
Recovery Product
(FRP)
First-time
Homebuyer
Product (FHP)
Rehabilitation Products
Energy Efficiency/
Weatherization
Rehabilitation
Product (EWP)
Accessibility
Rehabilitation
Product (ARP)
AHP Set-aside Products
Are you interested in?
 The opportunity to generate fee income on purchase transactions
 Enhancing and developing realtor partnerships
 Reducing loan risk
 Additional equity to reduce loan to value
 Improving the condition of collateral
 Funding that can be combined with down-payment assistance from
other sources
 A streamlined process with reduced paperwork
 Addressing CRA requirements
FHLBank Atlanta’s New Set-aside Products can help!
AHP Set-aside Products
First-time Homebuyer Product
The First-time Homebuyer Product provides matching funds for the down
payments and closing costs of first-time homebuyers.
Product Highlights:
Maximum subsidy is $7,500 per homebuyer
Funding is provided as a 4 to 1 match
The homebuyer must contribute at least $1,000
The homebuyer must have income that is less than or equal to 80% AMI adjusted
for family size
Purchased home must be used as the homebuyer's primary residence
Homebuyer must meet the definition of a first-time homebuyer as defined by the
Cranston-Gonzalez National Affordable Housing Act of 1990
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AHP Set-aside Products
Community Stability Product
FHLBank Atlanta's Community Stability product provides up to $7,500 in
down-payment and closing-cost funding to first-time homebuyers or
non-first-time homebuyers for the purchase or purchase and
rehabilitation of an existing home in neighborhoods targeted for
stabilization by a government or special district or authority.
Product Highlights:
Maximum subsidy is $7,500 per homebuyer
Funding is provided as a 4 to 1 match
The homebuyer must contribute at least $1,000
The homebuyer must have income that is less than or equal to 80% AMI adjusted
for family size
Home must be located in a neighborhood targeted for stabilization by a federal,
state, or local government entity or any special district or authority.
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AHP Set-aside Products
Examples of Community Stability target areas include but are
not limited to:
− Community Development Block Grant Target Areas
− Tax Allocation Districts
− Community Reinvestment Act Target Areas
− Enterprise Zones
− Special Planning Areas
− State/Local Housing Agency Target Areas
− Neighborhood Stabilization Program Target Communities
− Disaster Recovery Zones
− USDA Rural Designated Areas
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AHP Set-aside Products
Foreclosure Recovery Product
FHLBank Atlanta's Foreclosure Recovery product provides up to $15,000
in down-payment, closing-cost, and rehabilitation funding for the
purchase or purchase and rehabilitation of an existing home from the
Real Estate Owned (REO) inventory of an FHLBank Atlanta member
financial institution. The funding is available to first-time homebuyers or
non-first-time homebuyers.
Product Highlights:
Maximum subsidy is $15,000 per homebuyer
Funding is provided as a 4 to 1 match
The homebuyer must contribute at least $1,000
The homebuyer must have income that is less than or equal to 80% AMI-adjusted
for family size
Home must be part of an FHLBank Atlanta member's Real Estate Owned
property inventory
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Purchase price of unit cannot exceed the "as-is" market value
AHP Set-aside Products
Property Eligibility Requirements for Purchase Products
Eligible Properties
 Owner-occupied units that are intended as the primary residence of the
homebuyer
- Single Family detached
- Condominiums
- Townhouses
- Foreclosed properties
- Cooperatives
- Manufactured and Mobile Housing
• Must be titled as real property in accordance with the laws and
requirements of the jurisdiction where the property is located
- New construction
• New construction requests are eligible when the home is within 30 days or
less of being closed (FHP and CSP only)
 Eligible Geographic Areas:
First-time Homebuyer
AL, DC, FL, GA, MD, NC,
SC, VA
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Community Stability
AL, DC, FL, GA, MD, NC, SC, VA
• Home must be located in a neighborhood targeted
for stabilization by a federal, state, or local
governmental entity
Foreclosure Recovery
AL, DC, FL, GA, MD, NC,
SC, VA
AHP Set-aside Products
Example
Homebuyer: Mr. W…
1st Mortgage Provided by Your Institution
Home Sales Price
Closing Costs
Total Costs
Member First Mortgage
$99,500
$6,282
$105,782
$92,536
AHP Set-aside
$7,500
Homebuyer down-payment
$1,500
Seller Contribution
$4,246
Member LTV
93%
(First Mortgage/Sales Price)
Member LTV without AHP Set-aside
(First Mortgage/Sales Price)
10
101%
AHP Set-aside Products
Are you interested in?
 Enhancing your existing collateral
 Developing strategic partnerships with key stakeholders in your market
 City, county and state government agencies
 Community development groups and nonprofit organizations
 Contractors
 Funding that can be combined with other sources
 Cross selling products to current and potential customers
 Improving the condition of properties to facilitate refinancing
 A streamlined process with reduced paperwork
 Paperwork can be initiated by community development groups or
nonprofit organizations
 Addressing CRA requirements
AHP Set-aside Products
Energy Efficiency and Weatherization
FHLBank Atlanta's Energy Efficiency and Weatherization product
provides up to $15,000 for weatherization and energy efficient
improvements of an existing owner-occupied home.
Eligible improvements include but are not limited to exterior doors,
HVAC systems, insulation, water heaters, roof, windows, and low-flow
plumbing fixtures
Product Highlights:
Maximum subsidy is $15,000 per homebuyer
Have incomes at or below 80% AMI adjusted for family size
Home must be owner-occupied and used as the borrower's primary residence
Borrower must have at least one year of ownership by a life estate or a full
interest in the fee title
Rehabilitation products allow for the involvement of an intermediary organization
or corporation working with the member. Soft costs, including intermediary
fees, of up to 20% of hard costs are allowed.
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AHP Set-aside Products
Accessibility Rehabilitation
FHLBank Atlanta's Accessibility Rehabilitation product provides up to
$15,000 to pay for accessibility improvements of an existing owneroccupied home.
Eligible improvements include but are not limited to exterior ramps and
sidewalks, bathroom and kitchen renovations, door widening, and floor
replacement
Product Highlights:
Maximum subsidy is $15,000 per homebuyer
Have incomes at or below 80% AMI adjusted for family size
Home must be owner-occupied and used as the borrower's primary residence
Borrower must have at least one year of ownership by a life estate or a full
interest in the fee title
Rehabilitation products allow for the involvement of an intermediary organization
or corporation working with the member. Soft costs, including intermediary
fees, of up to 20% of hard costs are allowed.
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AHP Set-aside Products
Eligible Uses of Funds
Maximum funding of $15,000 available per homeowner
Funds are to be used for the rehabilitation of an existing owner-occupied unit
Energy Efficiency / Weatherization
Rehabilitation Product (EWP)
Accessibility Rehabilitation Product (ARP)
Scope is limited to the following to advance
energy efficiency / weatherization
objectives:
Scope is limited to the following to advance accessibility
objectives:
Scope of Work
% of Max Funding
Scope of Work
•Exterior Doors
•Not to exceed 15%
•HVAC
•Not to exceed 55%
•Exterior ramp, sidewalk, and/or
driveway
•Insulation
•Not to exceed 15%
•Handicapped bathrooms
including toilets, sinks, vanities,
grab bars, and showers
•Roof
•Not to exceed 35%
•Kitchen cabinets / sink
% of Max Funding
•Not to exceed 45%
•Carpentry to widen doors
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•Windows
•Not to exceed 40%
•Low flow plumbing
fixtures
•Not to exceed 15%
•Other rehabilitation
•Not to exceed 20%
•Replacement of floor
coverings
•Not to exceed 50%
•Other rehabilitation
•Not to exceed 20%
AHP Set-aside Products
Property Eligibility Requirements
Eligible Properties
 Owner-occupied units that are intended as the primary residence of the
homebuyer
- Single Family detached (1-4 Units)
- Condominiums
- Townhouses
- Cooperatives
- Manufactured and Mobile Housing
• Must be titled as real property in accordance with the laws and
requirements of the jurisdiction where the property is located
 Have at least one year current ownership
- Life estate
- A full interest in the fee title
 Eligible Geographic Areas:
FHLBank Atlanta District
Alabama, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia
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AHP Set-aside Products
Example
•Habitat for Humanity works with low and moderate income families as well
as the elderly homeowners throughout the state to achieve the
organization’s goal of safe and decent affordable housing
•Habitat has identified 15 low and moderate income homeowners in need of
energy efficiency/ accessibility repairs
•Rehabilitation cost will be $10,000 per home
•Inspection costs before and after completion of repairs will be $250 per
home
How much will Habitat earn if they coordinate the repairs for
all 15 homes?
Note: All participating homeowners must complete financial literacy counseling with
CredAbility for a fee of $150
AHP Set-aside Products
Example
Maximum Available Funding (per home)
$ 15,000
Rehab costs
Soft Costs – 20%
$10,000
$ 2,000
Total Cost for this Home
$12,000
Maximum Soft Costs
Member Financial Institution
CredAbility Counseling Fee
Inspection fees paid
$ 2,000
($200)
($150)
($250)
Habitat will earn $1,400 * 15
$21,000
AHP Set-aside Products
Tools for Success
Product
Expertise
FHLBank Atlanta will provide:
Training
Materials
Interactive
Website
Product
Brochures
• Customizable Product
Brochures
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• Audience
Specific
Messaging
• Technical
Assistance
• Webinars/
Workshops
• Training
Materials
AHP Set-aside Products
How To Apply
Intermediaries apply
for funds for eligible
homebuyers/
homeowners through
an FHLBank Atlanta
member financial
institution
Member financial
institutions will
submit applications
to FHLBank Atlanta
on behalf of the
homebuyer/
homeowner
Upon the
approval of all
documentation
required for funding
FHLBank Atlanta will
credit funds to the
member financial
institution’s demand
deposit account
Member financial
institutions will
disburse funds:
Prior to loan closing
for purchase products
After work is
completed for
rehabilitation products
AHP Set-aside Products
Do You Have Deal?...Give us a call!
How To Get Started
New AHP Set-Aside Product Users
1. Execute the Set-aside Product Agreement
http://www.fhlbatl.com/docs/cis/15-ahp-set-aside-agreement.pdf
2. Designate a Program Manager
http://www.fhlbatl.com/docs/cis/2-program-manager-designation.pdf
3. Submit Your Applications
Required with initial application for funding:
•
20
–
Sample retention documents (note and mortgage)
–
Completion of product training
AHP Set-aside Products
Do You Have
Any Questions?
We are happy to help
AHP Set-aside Products
Contact Us For More Information
Business and Relationship Development
General Information, Member Activation, Product Eligibility, etc.
(800) 536-9650, Option 3, Option 3
ShaDonte Dozier
(DC, MD, SC, VA)
Louis Freeman
(AL, FL, GA, NC)
CIS Business and Relationship Development Manager
CIS Business and Relationship Development Manager
Johnetta Tinsley
CIS Lending & Disbursement Documentation Specialist
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